To Whom this may concern,

it would be great if you could help me answer the following question/ step by step explanation of each question 2.1, 2.2, 2.3. Thank you for your time.

Kind regards,

L

2. Consider an economy where output-perworker, 310.\"), is produced according to the production function: 318) = Man\"0k (1')\". where O O. 2.1. Explain what is meant by 'absolute convergence', 'conditional convergence', and 'speed of convergence'. If absolute convergence holds, then explain what, if anything, this implies for whether conditional convergence holds. [20%] 2.2. You are given annual data on output-pereffective worker for the UK that begins in 1942 and ends in 2019. Performing the following growth regression you obtain (where the coefficients reported are the point estimates} log (3\" ) = 0.09 0.015log@,_1),t = 1943, ...,2019. J't- 1 Does this regression tell us what the UK's steady state level of output-perworker is equal to and its 'speed of convergence"? Explain your reasoning and show all your calculations. [1 5%] 2.3. The Government estimates that output-perworker is currently 20 percent below its steady state level. In a bid to lure voters, the government announces a goal to close half of the gap within ten years. Explain whether the government's goal is feasible using calculations to support your answer. [15%] [Total 50%]